Kober, R. et al. (2007): The interrelationship between management control mechanisms and strategy. In: Management Accounting Research, 18: 425-452. Miles, R. W., & Snow, C. C (1978): Organizational Strategy, Structure, and Process. New York: McGraw-Hill.
This essay is going to discuss the perception that financial accounting appears to be transforming. It demonstrates that why the financial accounting theories appears and the difference between descriptive and prescriptive methods of research; the reason why researches might shift from one method to another and how the accounting theories influence by some famous researchers contribution such as Paton, Littleton and Chambers. Accounting is a human activity; therefore accounting theories should consider people’s behavior with respect to accounting information. (Deegan, 2009, p.4) Hendriksen (1977, p.1) defends that accounting theory should be logical in the form of broad principles. It provides a general framework of reference by which accounting practices can be evaluated and guides the development of new practices and procedures.
Van Caneghem, T. (2002). Earnings management induced by cognitive reference points. The British Accounting Review, 34(2), 167-178. Varian, Hal, 1972, Benford's Law (Letters to the Editor), The American Statistician 26, 65. Wallace, W. A.
For internal control, the accountant has a responsibility to monitor finances of a company. Other responsibilities include keeping track of liabilities, duties and taxes. Furthermore, analyses of measurement data on creditors or stockholders are also provided by an accountant. This essay will seek to prove that through principles of financial accounting, cost accounting and cost management, accountants can control the cost of business rather than change demands of customers. In research, there are three main form of management accounting to control the cost in an organization effectively and efficiently.
Today, however, the AIS is concerned with non-financial as well as financial data and information. In general, a bank’s AIS has the same role as in other companies that is to provide financial and non-financial information to the company’s external parties (such as investors, creditors, and tax agencies) and internal parties (principally management). However, due to the characteristics of banking business, banks’ AIS have specific important features related to their liquidity management and the management of their customers’ accounts information. A bank has to manage its liquidity efficiently in order to maximize profit and to fulfil regulation requirements (minimum reserve requirement). To perform such duties, the treasury manager needs information of consolidated balance of customers’ deposits, loans and o... ... middle of paper ... ...ssinger, J.
Along with them, is the FASB. „« The Financial Accounting Standards Board (FASB), is a professional standards board created by accountants to establish Generally Accepted Accounting Principles (GAAP), which are the accounting standards used by accountants in the U.S. The GAAP reporting method makes it possible for investors and regulatory authorities to accurately determine an organization's financial results. „« The Public Company Accounting Oversight Board (PCAOB) was created to oversee the activities of the auditing profession. Specifically to oversee t... ... middle of paper ... ... Line56 ,Retrieved August 17, 2001.
The reconciliation from the IFRS to the US GAAP shows that accounting for the same line item under two standards can create financial statement differences. Those differences have material impact on the measurement of the net income under both standards. But to decide if differences are significant or material, first one should understand the concept of materiality. Next, one should find a reconciling adjustment with a martial effect on net income. Then, one should analyze what has led to the creation of the adjustment, and to calculate the amount that affects the net income (Street et al., 2000).